EUR/USD – Euro gains ground, investors eye Fed minutes

EUR/USD has posted gains in the Tuesday session. Currently, the pair is trading at 1.1515, up 0.29% on the day. There are no eurozone or U.S events on the schedule. On Wednesday, the U.S releases Existing Homes and the Federal Reserve will publish the minutes of the July policy meeting.

The euro has declined more than 2% in August, but is enjoying a mini-rally. EUR/USD has posted gains over four straight days, as the strong U.S dollar has given up some ground to its major rivals. The euro has pushed above the 1.15 line on Tuesday, for the first time since August 10. Investor risk appetite is higher, on the news that the U.S and China are holding trade talks later in the week. The U.S is unhappy with the Chinese protection of local markets and technology transfers required in order for U.S businesses to operate in China, but it’s questionable if the Chinese will show much flexibility. Both sides have slapped tariffs of $34 billion on each other’s products, with another $16 billion in tariffs scheduled for August 23. If the negotiations lead to the suspension of the upcoming tariffs, risk appetite would rise and the euro could gain ground. However, the talks involve low-level officials, so the meetings are unlikely to result in a breakthrough in the US-China trade spat.

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Tuesday (August 21)

• There are no eurozone or U.S events

Wednesday (August 22)

• 10:00 US Existing Home Sales. Estimate 5.44M
• 14:00 US FOMC Meeting Minutes

*All release times are DST

*Key events are in bold

EUR/USD for Tuesday, August 21, 2018

EUR/USD for August 21 at 5:50 DST

Open: 1.1483 High: 1.1542 Low: 1.1481 Close: 1.1515

EUR/USD Technical

EUR/USD posted gains in the Asian session. The pair is steady in European trade

• 1.1434 is providing support
• 1.1553 is under pressure in resistance

Further levels in both directions:

• Below: 1.1434, 1.1312, 1.1119 and 1.0951
• Above: 1.1553, 1.1637 and 1.1718
• Current range: 1.1434 to 1.1553

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